- The developers had to issue the denial notice following rumors that the team plans to “eliminate scrypt miners.”
- Even though the Dogecoin team has denied Rabid Mining’s news, industry analysts have doubts about implementing a PoS switch for Dogecoin.
Dogecoin developers have denied the news making the rounds that the network will be switching to a PoS network soon. Instead, the developers clarified that they would submit a proposal. The Dogecoin foundation’s principal engineer, Michi Lumin, tweeted about the denial on Thursday via his official Twitter account.
More info for ya. Influencers, even if they have millions of views and followers, even if they speak with authority, do not actually have the inside scoop on what’s going on with #dogecoin. Just because one says a validation method is changing, doesn’t mean it is.
— Michi Lumin (@michilumin) December 29, 2022
According to Lumin, the Dogecoin foundation can’t upgrade the network without receiving approval from the network’s validators. He further explained, saying, “no organization or individual can switch Dogecoin to PoS. The maximum they can do is to provide the validators and the community with an outline, possibly a code outline. Hence, it is ridiculous that people say Dogecoin is switching to a PoS. That’s not how this network runs. We don’t do things by authoritativeness or force.”
Spreading rumors for views and followers
Lumin added that those spreading the rumors were doing so to get more views or follows on their social handles. Lumin’s last statement was an apparent jab at Rabid Mining, a YouTube channel that first published the ‘news’ on Wednesday. The channel titled the video “What if Dogecoin moves to PoS?” and shared the video on Twitter and Reddit before it went viral.
One Redditor commented that a Dogecoin switch to PoS will cause at least a 60% profit reduction for scrypt miners.
DOGECOIN Wants To Merge To POS This Will Kill Scrypt miners Profits By Over 60% https://t.co/XRZRi7GT3f@dogecoin #doge #asicmining #crypto #cryptos #cryptomining #passiveincome #bitmain #cryptonews #Dogecoin #Vitalik
— Rabid Mining (@MiningRabid) December 28, 2022
The video didn’t specify that the Dogecoin team would forcefully switch the network to a PoS. Instead, it assumed that the Doge foundation might make a move since Ethereum CEO, Vitalik Buterin, is one of the foundation’s advisors. Also, the video warned that no one should buy scrypt miners since a PoS switch means the end for scrypt miners.
Furthermore, Rabid Mining predicted that Dogecoin would make the switch quickly. The YouTube channel claims to be confident about the information citing an October news article where the article claimed that a Dogecoin PoS proposal is in the works. Rabid Mining added that the Dogecoin foundation website had previously discussed this proposal. Nevertheless, Lumin’s tweet proves that a PoS upgrade is inevitable.
Doubts regarding Dogecoin’s PoS implementation
Even though the Dogecoin team has denied Rabid Mining’s news, industry analysts have doubts about implementing a PoS switch for Dogecoin. According to the analysts, there should be a test chain before the complete upgrade to a PoS. For instance, the beacon chain was Ethereum’s test chain before its switch to a proof-of-stake.
Using the beacon chain, Ether users transferred their ETH to a new PoS from the old proof-of-work (PoW). Ethereum developers didn’t complete a final merge of the two networks until many users successfully used the new chain. Yet, some miners ‘hard-forked’ the old Ethereum PoW network and called it ETHW because they disliked the upgrade.
However, the completion of the merge resulted in a 65 percent drop in the ETHW’s price. This price decline resulted in declining mining profits, forcing some miners to shut down their operations. A 2miners.com chart showed the declining rate in the ETHW hash rate.
Nevertheless, time will tell whether Dogecoin will also use the process to make its switch or whether it will make a switch at all. However, the hot debate surrounding the rumored change proves that some Dogecoin community members do not want the proposed change.